The 30 million deutsche mark (DM) line of credit approved by Kreditanstalt fur Wiederaufbau (KfW) to Housing Finance Development Corporation (HDFC) may be held up following the sanctions imposed by developed nations on India. "We may not be able to draw down on the line of credit from KfW following the sanctions," said Deepak Parekh, chairman of HDFC at the institution's annual general meeting here.
However, the $100 million line from the Asian Development Bank will not be affected. Of this, the company has already drawn down $20 million in December last and another $25 million will be drawn this year. HDFC has tied up funds to the tune of Rs 4,060 crore for this financial year. On its tie up with Standard Life, UK for life insurance, Parekh said that HDFC would mostly set up a separate company that would operate in this area, but this would depend on how the insurance sector is liberalised.
"We hope to be among the first entrants in this business as and when it is opened up," he said.
HDFC had shown a 29 per cent increase in approvals and a 31 per cent growth in sanctions for the year 1997-98, with the individual loan business growing by 50 per cent. A special one time dividend of Rs 20 per share has been given to shareholders, over and above a 50 per cent dividend for the year.